As this year’s football season reaches an end, here at CreditHQ we thought we’d take a look at how good the top football clubs are at performing where it matters – in the payments department!
Small businesses wait on average, 72 days for payment of invoices, and our analysis last year showed the average overdue invoice to a small business was worth a whopping £6,142.
The Payment Premier League was compiled by combining figures for payment performance and credit risk.
“If a small business wins a contract with their local football team then it is easy to let the heart rule the head, and just go ahead with the work regardless – people love the idea of working for the team they support,” said Martin Campbell. “But our analysis shows that just because a team is good on the pitch, it doesn’t necessarily follow that they will be as strong when it comes to paying invoices on time.”
“Winning a major contract with any sizeable local company is a big deal for a small business, but few would think to run a credit check. Yet the average time for a small business to be paid is 72 days, a period of time which could be seriously problematic for a small business if the figures involved were big enough.”
Sunderland and Crystal Palace were the worst performers on our payment premier league, so if you’re thinking of doing business with either of these teams, follow these simple tips to ensure you’re taking the right precautions to ensure you stay on top of your business cash-flow:
- Stay on top of your invoice process to get invoices out on time.
- Follow up before the invoices are due.
- Chase invoices when due and always charge interest on overdue invoices (or issue a letter of intent).
- Review payment terms for this company, including payment up front if you are really worried about the impact of late payment.
- For major concerns about a customer’s financial health, don’t be afraid to walk away from a deal.
Check out who you’re doing business with at www.credithq.co.uk